GBP/USD Price Analysis: Stays subdued at around 1.2850
The Pound Sterling clings to minuscule gains on Friday after the latest inflation report in the United States (US) reinforced investors’ bets that the US Federal Reserve could begin slashing rates at the September monetary policy meeting. At the time of writing, the GBP/USD trades at 1.2858, virtually unchanged.
The GBP/USD consolidated at around 1.2850 after sellers strengthened and pushed the exchange rate past the 1.2900 figure, which was unsuccessfully cleared during the first three days of the week. Despite this, momentum is still in buyers’ favor, as depicted by the Relative Strength Index (RSI), though extremely long positions on Sterling could leave traders vulnerable if the Bank of England (BoE) cuts rates next week. Read more…
GBP/USD: Bulls strife to test the 1.2925 resistance – Scotiabank
The Pound Sterling (GBP) has nudged a little higher in quiet Asian and European trade after closing on the lows yesterday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
“With little data to cue off of and calmer market conditions prevailing in stocks, GBP has benefited from some light short covering demand into the weekend.” Read more…
Pound Sterling steadies above two-week low after release of US core PCE inflation
The Pound Sterling (GBP) remains sideways above fresh two-week low of 1.2845 against the US Dollar (USD) in Friday’s American session after the release of the United States (US) Personal Consumption Expenditures price index (PCE) report for June. The report showed that annual core PCE Inflation grew steadily by 2.6%, higher than the estimates of 2.5%. Also, the underlying inflation rose by 0.2% month-on-month, higher than the estimates and the prior release of 0.1%.
The core PCE Price Index is a Federal Reserve’s (Fed) preferred inflation measure and its sticky nature is unfavorable for market expectations for Federal Reserve (Fed) rate cuts. According to the CME FedWatch tool, 30-day Federal Fund futures pricing data shows that the central bank will start reducing interest rates in September. Read more…
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